Hot Stocks Vietnam-linked stocks fall as anti-China riots continue

by **Cals** Fri 16 May 2014, 02:14

Hot Stocks Vietnam-linked stocks fall as anti-China riots continue

Business & Markets 2014

Written by Ahmad Naqib Idris Adzman Shah of theedgemalaysia.com

Thursday, 15 May 2014 13:48

KUALA LUMPUR (May 15): Share prices of Vietnam-linked stocks including Poh Huat Resources Holdings Bhd, Latitude Tree Holdings Bhd (LTHB) and Magni-Tech Industries Bhd, fell on Thursday following the anti-China protest riots in Vietnam.

At 12.30pm, Poh Huat fell 3 sen or 2.5% to RM1.18, Latitude lost 8 sen or 3.5% to RM2.82, while Magni-Tech’s share price decreased by 6 sen or 2.1% to RM2.83.

In an announcement to the exchange yesterday, Poh Huat said that it had temporarily stopped its factories in Vietnam due to the anti-China protests.

The company said: “The anti-China protest in Vietnam has affected the operations and factory buildings belonging to Poh Huat Furniture Industries Vietnam Joint-Stock Company (Poh Huat Vietnam), a major subsidiary of the group, located in both Binh Duong and Dong Nai Provinces.

The company added that the damage to the assets of Poh Huat Vietnam was minimal and that it was currently assessing the operational and financial impact from the damage.

Similarly, LTHB said it had also ceased its factory operations in Vietnam temporarily after being vandalised, ransacked and looted by rioters.

“For safety reasons, LTHB does not allow the factory manager of LTV (Latitude Tree Vietnam) and his team to enter the factory at present. As such, LTHB is unable to ascertain the damages and its financial impact thereon,” said the company in a statement yesterday.

The company said it was unsure when operations may be resumed.

Meanwhile, a spokesman for Magni-Tech told theedgemalaysia.com over telephone that the company was still assessing the impact of the riots on its Vietnamese operations.

“We are following the matter closely, and we are still assessing the impact of the rioting on our operations.

“If there is any material impact, we will make the necessary announcements to Bursa Malaysia,” he said.

Reuters reported that the rioting broke out during protests at industrial zones in southern Vietnam as thousands of workers were angered by Chinese oil drilling in a contested area of the South China Sea, according to officials.

More than 20 people were killed and rioters attacked Vietnam’s biggest steel plant overnight, as the violent protests spread to the centre of the country after arson and looting in the south, Reuters said.